The Reserve Bank is continuously watching the liquidity situation and would decide on its future course of action on interest rates at an appropriate time, Governor D Subbarao said.We are hearing what everyone is saying and the decision will be taken at an appropriate time, Subbarao told reporters after his meeting with Finance Minister P Chidambaram, when asked about the RBI’s planning about rate cuts.
Subbarao is believed to have discussed the current liquidity situation in the country''s banking system at a meeting with the Finance Minister here, where private sector banking giant ICICI Bank CEO and CII President K V Kamath was also present. According to the RBI Governor, the RBI is constantly and continuously monitoring the situation. Asked if ICICI Bank would cut interest rates, Kamath said that interest rate is a play of demand and supply. Yesterday Commerce Minister Kamal Nath said after a meeting of the Prime Minister-chaired committee on tackling the global turmoil that the RBI might look at fresh measures to inject more funds into the cash-starved banking system.
Subbarao is believed to have discussed the current liquidity situation in the country''s banking system at a meeting with the Finance Minister here, where private sector banking giant ICICI Bank CEO and CII President K V Kamath was also present. According to the RBI Governor, the RBI is constantly and continuously monitoring the situation. Asked if ICICI Bank would cut interest rates, Kamath said that interest rate is a play of demand and supply. Yesterday Commerce Minister Kamal Nath said after a meeting of the Prime Minister-chaired committee on tackling the global turmoil that the RBI might look at fresh measures to inject more funds into the cash-starved banking system.
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